The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mohawk Industries beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share dropped.
Margins shrank across the board.
Mohawk Industries reported revenue of $1.38 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $1.33 billion on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $1.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.72. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.72 per share on the same basis. GAAP EPS of $0.62 for Q4 were 6.1% lower than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 120 basis points worse than the prior-year quarter. Operating margin was 5.4%, 30 basis points worse than the prior-year quarter. Net margin was 3.1%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.41 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $5.95 billion. The average EPS estimate is $3.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 138 members rating the stock outperform and 52 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Mohawk Industries a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mohawk Industries is hold, with an average price target of $60.70.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.